Way Forward For Mumbai’s Real Estate Market in 2014
The year 2013 has been all about clearing the existing inventory for developers in Mumbai. The city has seen a fall of new project launches this year. The year has been challenging to both developers and buyers. Though the current slow market sentiment is expected to continue for a short to medium term, the year 2014 is expected to see more investment opportunities in Mumbai.
Year 2014 to see new launches
Developers are more focused on clearing inventory this year due to the subdued market sentiment, which has been the result of global and domestic economic, slow down. The positive side of this market sentiment is that it has kept the prices stable and more realistic as the demand is low. Though the market sentiment is subdued, Mumbai will see a number of projects launches next year.
There are a number of under-construction projects that will be launched next year. There will also be a launch of several projects that were deferred for the last couple of years. Developers with large land parcels too will be launching new buildings in phases. Hence, there will be enough fresh supply of projects by the next delivery cycle, which will balance out the current supply/demand mismatches in selective pockets.
Mumbai, a buyer’s market
Aiding new project launches will be the rational prices of projects. The situation of oversupply and low demand has made Mumbai real estate market a buyer’s market at the present moment. With a good number of ready-to-move-in projects coming up in 2014, buyers will be in a position to assess and select properties to invest. They will also be in a position to negotiate good deals.
Mumbai is also expecting to see price corrections in certain micro-markets next year. Although premium developers may be able to attract property buyers with their existing pricing structure, overall property prices are expected to either remain stable or see a minor correction for short to medium term.
Hence, the number of project launches in 2014, coupled with stable property prices, will offer fresh investment opportunities for buyers.
